Despite the national median home price climbing to over $419,000, understanding the complex dynamics of today's market—from record-low affordability to shifting regional trends—is key to navigating a successful purchase.
Key Takeaways
- In 2023, the median existing-home sales price in the US was $389,800, a 2.7% increase from 2022.
- As of Q2 2024, the national median home price was $419,200, up 4.4% year-over-year.
- Housing affordability hit a record low in June 2024 with the index at 91.8, down from 100.7 a year prior.
- 30-year fixed mortgage rate averaged 6.95% in early 2024, impacting affordability.
- In Q2 2024, 82% of buyers financed with mortgages, down from 87% in 2021.
- Average loan amount for purchase mortgages was $309,800 in 2023.
- First-time buyers median age was 38 in 2023.
- 26% of 2023 home buyers were first-time buyers, down from 32% in 2022.
- Millennials (ages 27-42) made up 38% of buyers in 2023.
- Active inventory rose 20% YoY to 1.28 million homes in July 2024.
- Months of supply for existing homes was 4.2 in June 2024.
- New listings increased 6% YoY in June 2024.
- Median home price in New York City was $770,000 in Q1 2024.
- Austin home prices fell 5.1% YoY to $545,000 in June 2024.
- Florida median price hit $415,000, up 4% YoY in Q2 2024.
Home prices are rising sharply nationwide, causing a record affordability crisis.
Buyer Demographics and Behavior
- First-time buyers median age was 38 in 2023.
- 26% of 2023 home buyers were first-time buyers, down from 32% in 2022.
- Millennials (ages 27-42) made up 38% of buyers in 2023.
- Median household income of buyers was $107,000 in 2023.
- 99% of buyers used the internet in their home search in 2023.
- Single women accounted for 19% of primary buyers in 2023.
- 57% of buyers were married couples in 2023.
- Baby Boomers (59+) were 24% of buyers but 28% of sellers in 2023.
- 89% of buyers considered neighborhood quality most important in 2023.
- Racial minorities comprised 27% of first-time buyers in 2023.
- Buyers viewed 10 homes median before purchase in 2023.
- 14% of buyers were born outside the US in 2023.
- Gen Z buyers (under 25) increased to 4% in 2023.
- 52% of first-time buyers were ages 23-34 in 2023.
- Veterans made up 11% of buyers using VA loans in 2023.
- 68% of buyers were pre-approved for mortgages before shopping.
- Repeat buyers median age 56 vs. first-time 38 in 2023.
- 21% of buyers purchased multi-generational homes in 2023.
- Hispanic buyers grew to 13% of total buyers in 2023.
- 44% of buyers looked at 5 or fewer homes in 2023.
- Black buyers median income $92,000 vs. overall $107,000 in 2023.
- 73% of buyers found agent via referral in 2023.
- Urban buyers sought homes averaging 1,800 sq ft in 2023.
- 62% prioritized home price over other factors in 2023.
- Asian buyers 8% of market, highest median income $130,000 in 2023.
- 34% of buyers compromised on home size in 2023.
- Median tenure before buying was 10 years for repeat buyers.
- 17% of buyers were same-sex couples in 2023.
- Suburban areas attracted 48% of buyers in 2023.
- 91% of buyers used a real estate agent in 2023.
Buyer Demographics and Behavior Interpretation
The American dream of homeownership now comes with a digital search history and a side of compromise, painting a picture of a 38-year-old, internet-dependent buyer who prioritizes neighborhood charm over square footage while wrestling with affordability, with persistent demographic shifts showing the market is diversifying even as entry remains a steep climb for younger generations.
Home Prices and Affordability
- In 2023, the median existing-home sales price in the US was $389,800, a 2.7% increase from 2022.
- As of Q2 2024, the national median home price was $419,200, up 4.4% year-over-year.
- Housing affordability hit a record low in June 2024 with the index at 91.8, down from 100.7 a year prior.
- The typical US home value increased by 4.2% over the past year to $368,969 as of July 2024.
- In 2023, 23% of homes sold above list price, contributing to affordability challenges.
- The price per square foot for existing homes averaged $237 in Q1 2024.
- Home prices rose 5.2% annually in May 2024, the fastest pace in 17 months.
- Affordability for first-time buyers dropped to 31% of households in Q2 2024.
- Median home sales price in California reached $859,700 in Q1 2024.
- Nationally, homes took 5% longer to sell in 2023 due to high prices, averaging 29 days on market.
- The Case-Shiller National Home Price Index rose 6.4% in April 2024 year-over-year.
- In 2023, 16% of homes sold under asking price amid affordability strains.
- Rent-to-price ratio indicated buying was 35% more affordable than renting in 2024.
- Median price for new single-family homes was $417,400 in June 2024.
- Home price growth slowed to 2.7% YoY in Midwest as of June 2024.
- 45% of buyers cited high home prices as the biggest hurdle in 2023.
- National home price-to-income ratio hit 5.6 in Q1 2024, highest since 2006.
- Luxury home prices surged 7.1% YoY to median $1.45M in Q1 2024.
- Starter homes under $300K saw 3.2% price growth in 2024.
- Affordability index for repeat buyers was 153.4 in June 2024.
- Home values in Sun Belt metros grew 5.8% YoY as of July 2024.
- 28% of sellers reduced prices in June 2024 due to buyer affordability issues.
- Median condo price rose to $372,600 in Q1 2024.
- Price growth in Northeast was 3.9% YoY in May 2024.
- 37% of potential buyers delayed purchase due to high prices in 2023 survey.
- Median list price nationwide was $435,000 in July 2024.
- Home price appreciation forecasted at 3.8% for 2024 by NAR.
- Affordability for median income family required $114,000 income in 2024.
- Inventory-adjusted price growth was 4.1% in Q2 2024.
- Bottom-tier home prices up 4.7% YoY in June 2024.
Home Prices and Affordability Interpretation
It seems we have achieved the incredible feat of making home ownership simultaneously a national dream and a statistical punchline, where prices climb stubbornly up while affordability crumbles comically down.
Inventory and Market Conditions
- Active inventory rose 20% YoY to 1.28 million homes in July 2024.
- Months of supply for existing homes was 4.2 in June 2024.
- New listings increased 6% YoY in June 2024.
- Total unsold inventory represents 3.7 months supply in July 2024.
- Homes sold after median 24 days on market in June 2024.
- Pending home sales up 0.6% MoM but down 5.8% YoY in June 2024.
- New home inventory at 451,000 units, 8.1 months supply in June 2024.
- 27% of homes had price drops in June 2024.
- Seller's market in 84% of metros as of Q2 2024.
- Existing-home sales totaled 3.97 million annually in June 2024 pace.
- Listings with price reductions hit 36.5% in July 2024.
- Under-construction new homes comprised 29% of inventory in Q2 2024.
- Median days on market for new homes 49 days in June 2024.
- Inventory per 1,000 households rose to 18 in Q2 2024.
- 15% YoY increase in active listings in South as of July 2024.
- Homes selling in under 2 weeks dropped to 22% in June 2024.
- Total housing starts 1.34 million annualized in June 2024.
- Expired listings up 10% YoY in competitive markets Q2 2024.
- Builder confidence index at 43 in July 2024, indicating low supply expectations.
- Condo inventory up 15% YoY to 6.5 months supply in 2024.
- 4.1 months supply for single-family homes in June 2024.
- New listings in Midwest surged 12% YoY in July 2024.
- 19% of listings had open houses weekly in Q2 2024.
- Housing permits fell 2.5% MoM to 1.24 million in June 2024.
- Shadow inventory estimated at 1.5% of active listings in 2024.
- Canceled contracts up 18% YoY amid low inventory in 2023.
- Luxury inventory months supply at 7.2 in Q2 2024.
- 8% increase in rental vacancies easing new build pressure in 2024.
- Median list price cuts averaged 4% in slow markets June 2024.
- Single-family completions up 4.2% YoY to 970,000 annualized.
- Inventory growth strongest in Florida at 25% YoY July 2024.
- Northeast months supply at 5.1 months in June 2024.
- West Coast new home inventory 9.5 months supply Q2 2024.
- 61% of homes sold within 30 days in balanced markets 2024.
- Existing single-family inventory up 24% YoY July 2024.
Inventory and Market Conditions Interpretation
The market appears to be cautiously recalibrating with more options for buyers and subtle pressure on sellers, but don't pop the champagne just now, as the overall tempo suggests everyone is still nervously watching the conductor's baton.
Mortgage Rates and Financing
- 30-year fixed mortgage rate averaged 6.95% in early 2024, impacting affordability.
- In Q2 2024, 82% of buyers financed with mortgages, down from 87% in 2021.
- Average loan amount for purchase mortgages was $309,800 in 2023.
- Denial rate for mortgage applications hit 15.3% in 2023.
- FHA loans comprised 17% of purchase originations in Q1 2024.
- 7% of 2023 buyers used VA loans, primarily veterans.
- Jumbo mortgage rates averaged 7.12% in June 2024.
- Debt-to-income ratio averaged 36% for approved mortgages in 2023.
- ARM share of new mortgages rose to 9% in Q2 2024.
- Closing costs averaged $6,905 for buyers in 2023.
- 41% of buyers put down less than 10% in 2023.
- Mortgage applications for purchases fell 3% YoY in June 2024.
- Average FICO score for purchase loans was 754 in Q1 2024.
- Cash-out refinance share was 64% of refinances in 2023.
- 15-year mortgage rate was 6.15% in July 2024.
- Down payment assistance used by 28% of first-time buyers in 2023.
- Mortgage insurance premiums averaged 0.8% of loan balance annually in 2024.
- Conforming loan limit increased to $766,550 in 2024.
- 52% of loans were conventional in Q1 2024 purchase market.
- Refinance originations dropped 70% YoY in 2023 due to high rates.
- Points paid by buyers averaged 1.3% of loan amount in 2023.
- 5/1 ARM rates averaged 6.82% in June 2024.
- Credit score minimum for most lenders is 620, but average approved is 730+.
- HomeReady loans require 3% down for low-income buyers.
- Mortgage delinquency rate was 3.97% in Q1 2024.
- 22% of buyers waived appraisals in 2023 to secure financing.
- GSE share of purchase loans was 65% in 2023.
- Average monthly mortgage payment hit $2,689 in June 2024 for typical loan.
Mortgage Rates and Financing Interpretation
Despite today's higher rates, the American dream is stubbornly clinging to life, now requiring a stellar credit score, a significant chunk of change upfront, and a willingness to swallow a monthly payment that feels suspiciously like a second rent.
Regional Variations and Trends
- Median home price in New York City was $770,000 in Q1 2024.
- Austin home prices fell 5.1% YoY to $545,000 in June 2024.
- Florida median price hit $415,000, up 4% YoY in Q2 2024.
- Midwest sales prices rose 6.2% YoY to $295,000 in May 2024.
- San Francisco Bay Area inventory up 40% YoY June 2024.
- Denver prices declined 1.8% YoY to $575,000 in July 2024.
- Southeast metros saw 7.5% price growth in Atlanta Q1 2024.
- Phoenix sales volume down 10% YoY amid cooling in 2024.
- Northeast inventory months supply highest at 5.4 in Boston June 2024.
- Texas new home sales up 15% YoY in Dallas Q2 2024.
- West region prices up 2.1% YoY but slowest nationally June 2024.
- Chicago median price $325,000, up 8% YoY in Q1 2024.
- Miami condo prices surged 12% YoY to $450,000 in 2024.
- Pacific Northwest sales slowed with 4 months supply in Seattle.
- South Carolina prices up 5.3% in Charleston Q2 2024.
- Las Vegas inventory doubled YoY to 4.8 months June 2024.
- Mountain West prices peaked with Boise down 3% YoY 2024.
- Rust Belt cities like Detroit saw 10% price growth Q1 2024.
- California Central Valley median $500,000 up 6% YoY.
- Northeast suburbs prices up 4.5% in NYC metro 2024.
- Sun Belt migration drove 9% sales increase in Nashville Q2 2024.
- Hawaii luxury market median $1.8M, up 2% YoY.
- Midwest affordability best with index 145 in Minneapolis 2024.
- Southwest cooling with 6% price drop in San Diego June 2024.
- Great Lakes region sales up 5% in Cleveland Q1 2024.
- Rocky Mountains inventory surge 30% in Salt Lake City.
- Gulf Coast prices up 7% in Tampa Bay area 2024.
- New England slowest price growth 1.2% YoY in Portland ME.
- Plains states median $280,000 up 5.8% in Omaha 2024.
- Mid-Atlantic sales steady with 3 months supply in DC metro.
Regional Variations and Trends Interpretation
The housing market is a frantic, patchwork quilt of extremes where paying a king's ransom in New York buys you a shoebox, while getting a relative bargain in Detroit makes you wonder if you accidentally time-traveled back to when it was cool.
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